Greater Birmingham and Solihull LEP Birmingham City Centre Enterprise Zone Investment Plan 2013/14 to 2022/23 - July 2014 - Amazon S3
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Greater Birmingham and Solihull LEP
Birmingham City Centre Enterprise Zone
Investment Plan 2013/14 to 2022/23
July 2014
Contact Economy Directorate Birmingham City Council Click: Email: planningandregenerationenquiries@birmingham.gov.uk Web: www.birminghamenterprisezone.org Call: Telephone: (0121) 303 3075 Visit: Office: 1 Lancaster Circus Birmingham B4 7DJ Post: PO Box 28 Birmingham B1 1TU You can ask for a copy of this document in large print, another format or another language. We aim to supply what you need within ten working days. Call (0121) 303 3075 If you have hearing difficulties please call us via Typetalk 18001 0121 303 3075 or e-mail us at the address above. Plans contained within this document are based upon Ordnance Survey material with the permission of Ordnance Survey on behalf of the Controller of Her Majesty’s Stationery Office. © Crown Copyright. Unauthorised reproduction infringes Crown Copyright and may lead to prosecution or civil proceedings. Birmingham City Council. Licence number 100021326, 2014.
Contents
Foreword 3
Introduction 4
Progress 6
Investment strategy 10
Investment programme 16
Financial strategy 22
Economic impact of the EZ investment programme to 2022/23 28
Governance and project delivery 30
Appendix 32
Risk register
contents / birmingham city centre enterprise zone investment plan
Birmingham Curzon concourse entrance birmingham city centre enterprise zone investment plan / foreword
Foreword 3
The Birmingham City Centre Enterprise Zone (EZ) is truly exciting. It is
enabling us to deliver significant growth and jobs for the benefit of the
whole of the Greater Birmingham and Solihull area.
One of the major benefits of the EZ designation is the ability for the Local
Enterprise Partnership (LEP) to retain all of the uplift in business rates in
the Zone for 25 years from April 2013. This is providing opportunities to
support the delivery of the EZ and achieve our wider objectives for the LEP
area.
Since we launched the EZ in April 2011 we have turned this
transformational initiative into reality. We have published a Business
Case, Implementation Plan and Prospectus setting the scene for the EZ,
explaining how it operates and detailing the strength of our offer. We have
approved two Local Development Orders for the Digbeth and Birmingham
Science Park Aston areas which streamline the planning system. Real
progress has also been made in securing the type of world class digital
infrastructure businesses need. Developments are starting to be delivered
on the ground and extensive marketing to promote the opportunities
in the EZ is building momentum. Importantly we are on course to have
created 2,500 jobs by the end of 2015.
This updated Investment Plan is a key piece of the jigsaw that will enable
us to continue to drive forward development and growth in the EZ. It will
also support the delivery of the Strategic Economic Plan and enable the
area to maximise the benefits of HS2. While the opportunity that the EZ
presents for generating new jobs is considerable, some key interventions
are needed to enable development to get off the ground quickly and
maintain delivery. These projects respond to the needs of the private
sector community and the desire to create truly long term economic
growth.
We are confident that the programme of investments set out in this plan,
funded with the resources generated by the EZ, will have a catalytic impact
on driving forward the delivery of this groundbreaking initiative.
Andy Street
Chair of the Greater Birmingham and
Solihull Local Enterprise Partnership
foreword / birmingham city centre enterprise zone investment plan
4 Introduction
Over its lifetime the Birmingham City Centre Enterprise Zone (EZ) will have
delivered 1.4 million sq.m of new floorspace, created over 40,000 new jobs,
contributed nearly £2bn to the economy in GVA per annum and generated
in excess of £1,700 million in additional business rates.
This Investment Plan sets out how in November 2011. These Services, Financial Services, Digital
the uplift in business rates will be documents set the direction for the Media, Creative Industries and ICT)
used to deliver the investment development of the EZ project. in which the City has a competitive
in infrastructure to unlock advantage in conjunction
development and growth in the The Business Case specifically with intelligent targeting of
City Centre EZ. outlined the barriers to growth and site marketing, will minimise
how the EZ could begin to remove displacement and maximise real
It has been prepared by these and act as a catalyst to the growth.
Birmingham City Council (BCC), as delivery of development. The 26
Accountable Body for the EZ, on sites included in the EZ are those The process and timescales for the
behalf of the Greater Birmingham identified in the Big City Plan (BCP) establishment of the EZ, as well as
& Solihull LEP (GBSLEP). where the greatest opportunities the structures required to deliver
for growth currently exist, but the operational elements have
The strategy contained of the where successful redevelopment been set, with the LEP as strategic
Investment Plan supports the and occupation is currently lead and BCC as the Accountable
Business Case, submitted to constrained by infrastructure Body.
Government in July 2011, and an limitations. The focus on those key
Implementation Plan submitted sectors (Business and Professional
KEY
EZ Sites
EZ Local Development Order
n
NORTH
The Birmingham City Centre Enterprise Zone
birmingham city centre enterprise zone investment plan / introduction
5
The approach to investment the EZ. It covered a five year on projects which formed part of
builds upon the recognition that investment programme period. the initial Investment Plan. It also
early intervention is required to Positive progress has been made identifies the interventions that
accelerate growth in the City in delivering these projects and the need to be made in the longer
Centre - an area which has both EZ. term to attract inward investment,
the capacity and characteristics engage potential occupiers and
to accommodate significant new The Investment Plan has now act as the catalyst for change in the
employment-creating business been updated to provide a longer City Centre and beyond.
activity in key sectors, and for which term approach to investment (to
a strategic framework for growth is 2022/23) to drive forward economic Set out within this Investment Plan
in place in the form of the BCP. growth. is the programme of projects worth
up to £275 million to be delivered
The Investment Plan Since the original Investment by 2022/23. The projects cover nine
The original Investment Plan was Plan was prepared, further key themes:
published in July 2012. It set out details are now known about the • Site Development and Access.
an initial programme of projects Government’s High Speed 2 (HS2) • Infrastructure.
valued at £128 million targeted proposals and the infrastructure
at kick starting the delivery of required locally to maximise the • HS2 Growth Strategy.
level of growth that this opportunity • LEP Investment Fund.
will bring. • Digital Connectivity.
• Business Development and
The EZ and HS2 are also key Support.
parts of the GBSLEP Strategic
Economic Plan (SEP) (published in • Skills Development.
March 2014), which identifies four • Simplified Planning.
investment programmes to support • Marketing.
the economic growth of the area.
The financial resources identified in The headline investments within the
the Investment Plan will support the programme are the redevelopment
implementation of the SEP through of Paradise Circus and Southern
the delivery of the EZ and other Gateway, extension of the Metro
projects. to Centenary Square, funding to
maximise the benefits of HS2 and
Since the introduction of the EZ support growth in the LEP area
over two years ago, there is now and the provision of high quality
more certainty about the levels of and safe connections to economic
income from the business rates opportunities for SME’s in Digbeth
uplift that EZ sites will generate. and the Jewellery Quarter.
A number of developments have
already been completed, with a The programme of investments,
pipeline of new accommodation set out in this plan, will unlock the
under construction or with planning growth potential in the EZ and
permission. This certainty gives the support the delivery of the LEP’s
LEP more confidence to develop a objectives for the region. This will
longer term investment strategy to have a crucial role in strengthening
support our growth aspirations. the region’s economy drawing
in private sector investment and
This update reflects the progress stimulating job creation.
and decisions that have been made
introduction / birmingham city centre enterprise zone investment plan
6 Progress
This section sets out the progress that has been in delivering the EZ since
2011. It sets out the decisions that have been made to support and attract
investment, as well as the progress made in delivering development sites
and creating accommodation in the City Centre for businesses.
A public hearing was held at the which comprised loan and/or
Investment
Investment Programme end of 2013, and the CPO has now grant funding. A healthy amount
Programme been confirmed. of interest was received, with
the potential to bring some sites
Since its inception, there has Excellent progress has been made forward for development sooner
been significant progress made on this project with a number of key than expected. The first tranche of
on one of the most ambitious milestones being met, including funding is expected to be awarded
and complex EZ’s in the UK. This the delivery of the new Library of in Summer 2014.
includes financial commitments Birmingham in September 2013.
that will support and enable sites The development remains on track
within the EZ to come forward for to start on site in 2014/15, with Infrastructure
development. This investment is the first buildings available for Metro Extension and Centenary
also being matched by the delivery occupation from 2017/18. Square improvements
of new development on EZ sites. The Metro Extension to Broad
Southern Gateway Street and refurbishment of
The following progress has been In early 2014, BCC Cabinet and the Centenary Square were identified
made: LEP agreed to direct investment as key infrastructure proposals in
into the development of the the Investment Plan (£25 million
Site access and development Southern Gateway EZ site. The £10 contribution to a £42.4 million
million investment will support the project) which will support the
Paradise Circus relocation of Wholesale Markets
Paradise Circus is a major proposed development of Paradise Circus
from the EZ site to enable the and Arena Central sites.
intervention for the LEP and BCC, redevelopment of this important
and formed a critical part of the City Centre site. Masterplanning
Investment Plan utilising £61.3 A Full Business Case is currently
will take place in 2014, with site being prepared for this
million. A number of key milestones preparation for development to
have been achieved since this initial project following the release
start expected in 2017. Whilst of development funding by
investment was identified. this project did not form part of BCC Cabinet in 2013. The EZ
the original Investment Plan, the contribution of £25 million is being
At the beginning of 2013, outline opportunity this site offers will
planning consent was granted for supported by funding from the
significantly benefit the delivery of Local Transport Board (£8 million),
the redevelopment of the area to the EZ programme.
create a new urban block at the Centro (£5 million) and developer
heart of the City Centre including contributions (£4.4 million). A
Direct site investment revised Transport and Works
Grade A office accommodation £15 million was identified in
and opportunities for retail and Act Order was also submitted to
the Investment Plan to support the Department for Transport in
hotel uses set within a high quality property development coming
environment. At this time, the LEP December 2013, together with the
forward on EZ sites (other than Land Acquisitions and Variations
Board also agreed the investment Paradise Circus). At the start of
decision to release the funding Order to obtain rights over land to
2014, BCC Cabinet approved construct the Metro. The scheme
to help bring forward the first the business case to take this
two phases of the site. This led to is programmed to start on site in
investment to the development 2015/6
the approval of the Joint Venture industry, and good progress has
agreement with BCC, Argent and been made in delivering this Connecting economic
British Telecoms Pension Fund. funding. opportunities
The Investment Plan identified
During 2013, BCC made a Expression of interest applications £17.9 million to fund a range of
Compulsory Purchase Order (CPO) were invited from developers and projects to enhance connectivity
to unify land ownership of the site. site owners to bid for funding, and create safe and attractive
birmingham city centre enterprise zone investment plan / progress
7
routes to EZ sites in the Snowhill, Additional resources to support • One Station
Digbeth, Jewellery Quarter and this programme have also been In support of the EZ Connectivity
Eastside areas. Progress has been secured through the Making the Programme, a £5.5 million high
made on a number of projects, and Connections (MtC) project, which quality public realm scheme is
there has been a strong degree of is for a series of public realm being developed for the link
success in attracting match funding enhancements around New Street between New Street Station and
for these schemes, with £3.4 million Station linking Paradise Circus, Moor Street Station. This scheme
of EZ funding leveraging in £19.5 Arena Central and Southern will support the investment that is
million of other funding. Gateway EZ sites. In May 2013, underway at New Street Gateway,
an Outline Business Case for the future investment at Birmingham
•C ity Centre Ring Road MtC project was submitted to the Curzon HS2 Station, and will
To ensure direct access is Local Transport Board (LTB) for improve access to EZ sites in
maintained to the EZ sites via Local Major Scheme Funding. In Eastside and Digbeth.
an efficient road network, a set September 2013 the project was
of essential junction capacity awarded £6.8 million as part of an The scheme has received
enhancements at key locations £8 million programme. EZ funding programme entry approval for
on the Ring Road were identified. of £0.4 million was identified as £3.5 million of funding from the
An outline business case was part of the match funding for the LTB Local Major Scheme Fund. EZ
developed for a package of works scheme. A Full Business Case for funding of £1 million was identified
worth £9.4 million. Funding for the the project will be developed by as part of the match funding
scheme includes £2 million from December 2014. for the scheme with a further £1
the EZ and £3.9 million from the
Department for Transport Local
Pinch Points Fund. Full Business
Cases are under development for
the project, with the first schemes
due on site in 2014/5.
• EZ Connectivity Programme and
Making the Connections Project
Work has commenced on
developing a programme of works
to enhance a number of links
between EZ sites, as well as the
main transport connections into the
City Centre. These enhancements
will be delivered through a public
realm improvement programme.
Early consultation has been carried
out and a number of potential
routes have been identified,
including links to Snow Hill,
Jewellery Quarter, New Street,
Southside and Digbeth/Eastside.
Consultants have been appointed
to assess the options available to
deliver enhancements to these
routes within the budget available.
The options assessment will be
Birmingham City University at Eastside
completed by the end of 2014.
progress / birmingham city centre enterprise zone investment plan
million from Centro/the Integrated Measurement Total
8 Transport Authority. A Full Business
Case for the project will be Number of new employment positions filled. 215
developed by December 2014.
Number of new enterprises. 13
Digital connectivity Amount of land developed or redeveloped (ha). 1.5
BCC and its partners have
New floorspace created
developed a package of measures
(gross internal area in sq.m - new and refurbished). 55,800
to enhance digital connectivity for
EZ sites as part of a wider package Public sector investment committed (gross, £m). 165.2
for the City. Following BCC Cabinet
approval in January 2014 of the Private sector investment committed (gross, £m). 588.5
Full Business Case, funding has
been put in place for the project Table 1 EZ measure of success to June 2014
from the Urban Broadband
Funding (£6.75 million), European
Regional Development Funding
(£2.29 million) and the EZ (£0.4
million). The scheme comprises Grade A office accommodation,
various elements, including a Site Delivery plus retail floorspace. Occupiers are
voucher scheme providing micro Site Delivery already in the building (including
grants designed to encourage the a serviced offices provider), and
uptake of high speed broadband The delivery of the 26 sites Wragge, Lawrence, Graham & Co is
connectivity and demand within the EZ is crucial to the expected to move into over half of
stimulation activities. overall success of the investment the available floorspace in Summer
programme and the performance 2014.
The programme was launched of the local economy. New
in the City Centre in early 2014, developments are expected to • Birmingham City University -
focussing on businesses in the come forward throughout the Phase 1
EZ. Early indications show a lifetime of the EZ, reflecting The Parkside Building, the
strong interest in the scheme the long lead times that are landmark first phase of the
with the majority of applications needed to bring forward large University’s new City Centre
originating in the EZ area. A large scale developments and the campus, opened to students
marketing campaign will follow, demand in the market for new in September 2013. The
and applications to the scheme are accommodation. accommodation brings together
expected to accelerate. the art, design and media
Encouraging progress has been departments into a building with
made on the delivery of new state of the art facilities, including
Marketing developments in the EZ (see the largest broadcast centre in any
In early 2013, the EZ Prospectus Table 2 opposite), in addition to UK university.
was successfully launched to the progress made on Paradise
200 property and investment Circus. This reflects the efforts of • University College of Birmingham
professionals at Birmingham Town BCC and its public and private - Phase 1
Hall. The Prospectus sets out the sector partners in bringing forward This development is the first phase
development opportunities and the development and infrastructure of a wider campus which will be
benefits the EZ offers across the 26 to support the delivery of the EZ, delivered by the University. The
sites. The launch was attended by despite the challenging economic building was completed in late
the Chancellor of the Exchequer conditions. Spring 2014, with occupation
and generated significant local and expected in time for the start of
national media coverage including the new academic term in Autumn.
the Financial Times, the Telegraph, Completed developments The building features a range
trade press and the BBC. • Two Snowhill of teaching rooms and lecture
Birmingham’s largest office theatres with the latest audio and
Since its inception, the EZ has also development since the onset of visual learning technology as well
been extensively marketed at other the credit crunch was completed as a café and post graduate and
events, including sales missions at Two Snowhill and launched to learning centres. The building
and at MIPIM, the international real the market in 2013. Two Snowhill can accommodate up to 2,500
estate trade fair. includes almost 30,000 sq.m of students.
birmingham city centre enterprise zone investment plan / progressOther progress • Other Site Investment • Birmingham Curzon HS2
• Site Development In addition to the Direct Site Masterplan 9
There has been a significant Investment fund, Birmingham City The Birmingham Curzon HS2
amount of activity on other EZ Council has agreed to use its own Masterplan has been prepared
sites to bring new development borrowing powers to offer loans to ensure the City Centre makes
forward. This includes six schemes to support development at Arena the most of the investment going
currently under construction Central and iCentrum (Digital Plaza) into the proposed High Speed
which will deliver a range of EZ sites. This funding will be used 2 terminus. The Masterplan was
commercial floorspace, enhanced to bring forward early phases of launched 27th February 2014, and
education facilities, additional development on these sites. These will be finalised in 2014. It will help
hotel accommodation and car works are expected to start in drive forward the delivery of 12 EZ
parking in the City Centre. A 2014/15. sites in the Eastside and Digbeth
number of planning permissions areas.
have also been granted, signifying The development of the new
the progress that is being made Assay Office on the St George’s
in bringing sites to the market. Urban Village site has also been
This includes development sites supported with £1.2 million grant
for office, hotel and other uses on from the European Regional
Arena Central, Snowhill Building Development Fund (ERDF).
3, Eastside Locks and Great Barr Additional resources from ERDF
Street. are also identified for small scale
developments on EZ sites.
Development Floorspace created/ Type of Jobs Status
refurbished (GIA) accommodation estimate
Two Snowhill. 30,500 sq.m Grade A offices, plus retail. 1,750 Completed, awaiting
occupation.
BCU (Phase 1). 18,300 sq.m Education facilities. 200 Completed and
occupied.
Former Post and Mail Building 22,390 sq.m Car park and retail. 100 Under construction.
(Phase 1).
University College of Birmingham 7,000 sq.m Education facilities. 25 Completed, awaiting
(Phase 1). occupation.
BCU Phase 2, Eastside Locks. 24,300 sq.m Education facilities. 265 Under construction.
Ladbrook House, Typhoo Wharf. 2,100 sq.m Hotel. 15 Under construction.
Assay Office, St George’s Urban 5,700 sq.m Office and light industrial. 150 Under construction.
Village.
Beorma (Phase 1). 8,700 sq.m Mixed use comprising offices, 250 Under construction.
hotel, retail and leisure.
109-111 Pope Street, St George’s 640 sq.m Offices. 5 Due to start on site
Urban Village. 2014.
Garrison Data Centre 1, Great Barr 7,500 sq.m Data centre. 30 Due to start on site
Street. 2014.
Extensions to existing businesses, 480 sq.m Offices. 65 Due to start on site
Warwick Bar. 2014.
Hotel, Newhall Square. 7,770 sq.m Hotel. 35 Under construction
Total 135,380 sq.m 2,890
Table 2 Based on present activity, developments in the EZ expected to have been completed by 2015
progress / birmingham city centre enterprise zone investment plan10 Investment strategy
The Strategy of the Investment Plan has been developed in direct
response to the needs of businesses, landowners and developers within
the EZ by identifying the key interventions necessary to help unlock growth
and enable development. This strategy forms the basis of the Investment
Programme which sets out a series of projects and interventions.
Following the launch of the EZ, to help champion individual To deliver significant growth will
BCC engaged with developers/ schemes would be of significant require increasing the pace of
landowners that have a direct benefit to the speed of delivery. business space provision for the
interest in one or more of the sites The final issue that many saw key economic sectors which entails
within the EZ. This engagement was as a direct restriction to starting over-coming site specific and
initiated through an introductory development was the availability market constraints. These include:
presentation in December 2011 of tenants and the promotion of
and followed up by one to one the City as a place to invest. This
meetings with each developer/ would be partially aided by the EZ Supply of business floorspace in
landowner in January 2012. The designation but targeted marketing key sectors
purpose was to communicate the would be needed to promote the In respect of Grade A office space
aims of the EZ, with the follow up overall offer. for the financial and business
meetings providing the opportunity services sector post 2013 there
to discuss individual sites and the It is clear that from both the
is limited supply in the Central
constraints to development. developer/landowner community
Birmingham office market. Based
and existing strategy work
upon long term trends of demand
This allowed a clear understanding through the BCP that there is
the market will reach a shortfall
of the obstacles to growth and how significant growth potential but
position in 2015/16 (see Graph 1
the EZ could enable development. also constraints to delivery which
opposite).
Of the 21 separate discussions if targeted and unlocked will spur
that took place 85% of the development. The messages are
This is a key issue as it will:
developers/landowners identified clear that if the EZ and the local
that investment was needed in economy are to be successful,
• L imit the potential to attract
infrastructure and general access then upfront action is required
inward investment in key
to their specific site. In particular to kickstart development activity,
opportunity areas such as back
the public transport and pedestrian support the implementation of the
office, shared services and
routes were of concern with the LEP Strategic Economic Plan and
headquarters functions.
need to create safe environments maximise the benefits of HS2.
attractive to investors and business. On this basis, the Investment Plan •D
isadvantage the LEP in
sets out a strategy to address the respect of restructuring of major
Whilst many acknowledged that following key issues: international and UK players in
investment is already being made the financial services sector as
in infrastructure, such as New they respond to global factors.
Street Station, this was cited as
addressing past deficiencies and
Site Access and • L imit the LEP’s ability to meet
more was needed to deliver the Development
Site Access and Development indigenous demand focused
aspirations for the City and help around lease events between
unlock EZ sites for development. Businesses need space to establish 2013-2022, which may lead to
and grow. This ranges from Grade functions in these businesses
More site specific issues affecting A office space in prime locations leaving Birmingham and the West
the ability to get development focused on the corporate sector Midlands.
moving was access to funding, to cheap flexible space for newly
with 53% identifying that funding, established creative industries. The
be it gap or building specific, was EZ has to maintain and develop a Responding to the economic
required. In all cases planning range of opportunities for business growth potential of key sectors
was not seen as a direct barrier to and promote them to appropriate The EZ focuses on those sectors
growth however 76% stated that a markets. that are already clustered in the
project champion with the capacity City Centre and where there is
birmingham city centre enterprise zone investment plan / investment strategy11
a competitive advantage to aid 1200000
future growth. Of these, Financial
& Business Services is expected to
represent the highest proportion
1000000
of total Gross Value Added growth
New and refurbished Grade A availability (Sq.ft)
in both Birmingham and the
wider LEP area, with associated
employment growth, as shown 800000
in the Table 3 below. This growth
potential needs to be supported by
investment to ensure it is delivered
in the Birmingham and LEP area. 600000
Supply of creative industries 400000
business space
This a growing and vibrant sector
particularly in Eastside, Digbeth
and the Jewellery Quarter with 200000 Tipping
point
1000’s of firms.
Typically this sectors space needs
0
are met through the refurbishment 2008 2009 2010 2012 2013 2014 2015 2016
of existing buildings (for instance Year end
the Custard Factory) or Science
Grade A supply (availability and completions less average take-up)
Parks. Both of these are challenging
in investment terms in the Demand (assumed conservative average annual Grade A take-up)
current economic climate and Source: GVA (March 2013).
require commitment by specialist Graph 1 Supply of business floorspace -
developers supported by long term Birmingham City Centre office market ‘tipping point’
commitments and investment.
Sectors/sub-sectors Birmingham LEP
Supply of sites
A key barrier to the delivery GVA growth 2012-2025.
of sites for development is
infrastructure provision. This is Financial and Business Services. +60.0% +64.0%
particularly important in shaping
- Computing Services. +106.5% +122.9%
new environments responsive to
modern business needs which can - Banking and Finance. +74.2% +68.2%
mean reducing highway impact as
Sectoral employment change 2012-2025.
a barrier to investor and occupier
perceptions. Financial and Business Services +16.1% +18.0%
The City also needs to achieve a - Insurance +35.8% +27.0%
step change in green infrastructure
Source: Cambridge Econometrics
provision to complement its activity
in digital infrastructure. Table 3 Economic growth potential in key sector
investment strategy / birmingham city centre enterprise zone investment planGreen infrastructure provision such Mobility Action Plan (BMAP) Green However local investment will be
12 as combined heat and power are Paper (2013) sets out the overall required to maximise the potential
important to convincing occupiers transport vision and priorities for of the scheme. HS2 will not be able
that they can achieve corporate action in the City Centre. to deliver all of its benefits without
credentials in environmental impact actions within the local area to
which are now a major location The emphasis that these plans deliver supporting infrastructure
factor. place on high quality connections and to coordinate the delivery of
recognises the important development. The City Council,
contribution this makes to the the LEP and Centro will produce a
Availability of access to economic performance and success HS2 Growth Strategy by April 2015,
development finance of an area alongside the public with local resources required to
The availability of commercial transport offer. This has been implement its proposals.
funding had been severely curtailed identified through considerable
during the recession and only research conducted by CABE,
high quality schemes with strong ECOTEC, Gensler and by Professor
covenants and significant pre-lets Michael Parkinson CBE. The LEP Strategic
had been able to secure funding for key proposals for improving the Economic
LEP Plan Plan
Strategic Economic
new development. As the national connections within and beyond the
economic picture has improved, City Centre are set out in the BCP In March 2014, the LEP published
there is now more confidence in the and BMAP. its Strategic Economic Plan
investment market with banks and (SEP) which sets out the actions
funders offering improved terms This research acknowledges that needed to re-establish Greater
on access to development finance. improvements to the quality of Birmingham’s role as the major
Whilst these changes are positive, connections plays a vital role in driver of the UK economy outside
there are still challenges to securing maintaining a competitive edge London. Five ‘game changes’ are
appropriate levels of investment to fundamental to the ability of urban identified which are fundamental to
deliver development. areas to compete successfully drive growth, which are supported
with other major cities. There is by four programmes to deliver the
a strong correlation between the overall strategy.
ability of businesses to build a
good quality image and reputation,
Infrastructure which provides a basis for growth,
The EZ is a key objective for the
Infrastructure delivery programme for the SEP as
with the existence of high quality part of strengthening Birmingham
As an economic entity the EZ connections. City Centre as the regional hub
needs to provide fast and reliable for economic activity. The early
connectivity into regional, national success of the EZ is already helping
and international labour and High Speed 2 to deliver against the objectives of
product markets. In this respect High Speed 2 the SEP.
connectivity is not simply physical
but also digital. HS2 is a once in a century Following the submission of the
opportunity to radically enhance SEP, the LEP has been allocated
Alongside this is the growing the LEP area’s national rail £357.3 million from the Local
importance of the quality connectivity and accelerate its Growth Fund for 2015-2021. This
and safety of the pedestrian economic growth potential. For includes £38.7 million of new
environment to connectivity and Phase 1 of HS2, London and funding for 2015/16. Further
impressions of place quality, which Birmingham will be linked reducing resources will be required from
in turn support labour market journey times from 1 hour 24 the public and private sectors to
retention and investor confidence. minutes to 49 minutes. The line achieve the overall strategy.
will also facilitate the scope for
To underpin the importance of future improvements to local and With the EZ firmly established, the
infrastructure to economic growth regional rail services on the existing approach set out in the Investment
the Vision for Movement was network. The programme will bring Plan of borrowing against future
produced in 2011 in support of the significant numbers of new jobs business rates uplift offers an
principles set out in the BCP. This and visitors to the City and help important local funding resource
is a vision shared and prompted promote investment. which can help support the delivery
jointly by the City Council, Centro of projects in the SEP.
and the four City Centre Business The new line and stations in the
Improvement Districts representing LEP area will provide a catalyst to
the importance this agenda has transform areas of the City Centre
for the business community in the and unlock major development
City. More recently, the Birmingham sites, including sites in the EZ.
birmingham city centre enterprise zone investment plan / investment strategyTo reduce both of these, a broader
Business
Digital Connectivity business support package will act 13
Digital Connectivity Development
Business Development as a counter weight to location
decisions in those areas particularly
To be successful cities must Generating economic growth exposed to displacement such
function as smart cities with through a supportive business as Digbeth, Jewellery Quarter
connectivity to customers, markets environment will require a and Eastside. In these areas high
and collaborative businesses coordinated package of financial numbers of small businesses on
being of the highest quality. Those incentives tailored to growth short or flexible leases are more
cities which secure competitive sectors. exposed to marginal changes in
advantage in this field will be the costs and more able to move freely
ones with the greatest proposals As part of the approval of the EZ in the property market.
for economic growth. it is a key requirement from DCLG
that the LEP provide measures to In order to achieve the wider
The Digital District area of Digbeth, reduce displacement of economic objectives of economic growth
Eastside and Jewellery Quarter, activity. Displacement will occur the EZ will need to support
which lies at the heart of the EZ, by. Firms moving into the locality businesses that have the potential
is constrained by the absence of to take advantage of EZ business to grow. This will provide balanced
affordable ultrafast broadband rate discounts who would otherwise investments to support and
services and commercial have located elsewhere in the local compliment site development and
communications operators do economy. infrastructure activity.
not wish to deploy ultrafast
infrastructure in regeneration areas
where a commercial return is some
years away.
•A
t present there is limited access
to the fibre infrastructure needed.
•C
ompetition, innovation and
choice are extremely limited in
the retail supply market so costs
of accessing ultrafast broadband
speeds are often unaffordable
to the SMEs upon whose
competitive growth the city
depends.
•T
here are substantial coordination
challenges involved in
aggregating demand from SMEs
to encourage a step-change
in investment to deliver the
longterm high speed solution
needed.
Unless these issues are addressed,
the EZ and wider LEP economy will
miss out on the positive spillover
externalities which competitor
areas in the UK and European cities
will be able to capitalise upon due
to their commitment to investing in
this infrastructure.
Masshouse Square
investment strategy / birmingham city centre enterprise zone investment planWith the loss of the major projects
14 Skills Development team, ongoing delivery will require
Skills Development additional capacity to ensure
that the Local Planning Authority
To ensure that jobs are secured by can respond and progress major
local people from within the LEP schemes rapidly through the
area we need to ensure access to system.
these opportunities are promoted
and channelled to a LEP wide Project champions with the capacity
audience. to champion schemes will play a
key role in supporting delivery as
Supporting skills development will identified by the private sector
both maximise the impact of the EZ community.
and support growth businesses.
The EZ has the potential to
significantly increase the number Marketing
of jobs, both within the EZ and Marketing
the broader supply chain across
the LEP. The development of the To be successful the EZ will need to
EZ and the consequential change market its potential encompassing
in the business make-up and both the corporate sector and
occupational profile of the area smaller creative industries
will result in an increased demand demonstrating its potential and
for particular skills at all levels, successes.
attracting highly qualified staff and
potentially supporting the retention The EZ offers an opportunity
of graduates within the City and to promote economic growth
wider area. and enterprise to both inward
investment and indigenous
For the EZ to succeed and attract markets. To maximise impact these
and grow businesses, employers opportunities need to be marketed
will need to have access to the to their fullest.
right people with the relevant
skills. There is also a vital role in
delivering the EZ for supporting
work with the Universities, Colleges
and other providers linking people EZ Delivery Team
to jobs. EZ Delivery Team
The Investment Programme
identified in this Plan will need to
Simplified Planning be implemented by BCC which
Simplified Planning will require effective management.
Dedicated project managers will be
A critical success factor for the EZ is necessary to ensure funds are spent
a supportive regulatory regime for and projects progressed quickly to
delivering economic growth. enable the associated development
of EZ sites.
A key objective of the EZ is to
streamline the planning process to
enable proposals for development
to be dealt with in a timely and
efficient manner whilst removing
unnecessary burdens. BCC is
supportive of this principle and
has already committed available
resources to delivering this,
however the scale of the Zone and
nature of development activity
will require dedicated resources.
birmingham city centre enterprise zone investment plan / investment strategy15
Birmingham Curzon internal concourse towards Station Square
investment strategy / birmingham city centre enterprise zone investment plan16 Investment programme
The Investment Programme has been designed, on the basis of the
Investment Strategy, to target funds to a range of projects that will help
unlock sites for development and enable the delivery of the growth, jobs
and uplift in business rates. The investments will focus on those sites with
the highest potential to deliver development in the early years and so
kickstart the success of the EZ.
The investment of EZ resources wider priorities once the EZ •A
n Approved Programme
into the City Centre will be used to resources have supported the City worth £128 million, based on
draw in match funding from other Centre. investments identified in the
sources, including some public original Investment Plan.
sector and significant private sector Table 4 below sets out the total
resources. Crucially this Investment Investment Programme worth £275 •A
n Additional Programme worth
Programme will enable the EZ to million. £147 million, as set out in Table
start generating the significant 5, to be brought forward when
levels of business rates which will The investment programme business rates income resources
enable the GBSLEP to support comprises: allow.
2013/ 2014/ 2015/ 2016/ 2017/ 2018/ 2019/ 2020/ 2021/ 2022/ Total
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (£m)
CAPITAL
Site Development and access
- Paradise Circus Phases 1, 2 and 3 - 16.97 27.27 16.23 1.86 10.07 3.88 7.39 4.12 - 87.79
- Direct investment into other 25 sites - 1.23 3.72 10.00 - - - - - - 14.95
- New Wholesale Markets - - 10.00 - - - - - - - 10.00
- Southern Gateway site remediation - - 2.00 6.14 11.35 1.34 7.23 7.41 - - 35.47
Infrastructure
- Metro extension and Centenary Square
improvements 0.14 7.16 8.85 8.85 - - - - - - 25.00
- Connecting economic opportunities - 2.26 5.00 8.00 2.40 - - - - - 17.66
LEP Investment Fund - - - - - - 5.00 5.00 5.00 5.00 20.00
HS2 Growth Strategy
- Curzon Station - - - - - - 7.50 7.50 7.50 7.50 30.00
- Interchange site - - - - - - 5.00 5.00 5.00 5.00 20.00
REVENUE
Direct investment into 25 other sites - 0.05 - - - - - - - - 0.05
Connecting economic opportunities - 0.21 - - - - - - - - 0.21
Digital connectivity - 0.36 0.04 - - - - - - - 0.40
Business development and support - 0.77 0.79 0.80 0.82 - - - - - 3.18
Skills development - - 0.33 0.33 0.34 0.35 0.46 - - - 1.81
Simplified planning - 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.72
Marketing - 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.72
Delivery Team - 0.45 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 3.25
Accountable body 0.25 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 2.14
Sub-total 0.39 29.83 58.72 51.07 17.49 12.48 29.79 33.02 22.34 18.22 273.35
Inflation allowance - 0.06 0.09 0.14 0.19 0.13 0.18 0.13 0.14 0.16 1.22
TOTAL 0.39 29.89 58.81 51.21 17.68 12.61 29.97 33.15 22.48 18.38 274.57
Table 4 EZ Investment Programme - capital and revenue projects 2013/14 to 2022/23
birmingham city centre enterprise zone investment plan / investment programme17
Key Activities
2013/14 to 2022/23
This development scheme has Southern Gateway
Site Access and capacity to deliver 10,000 jobs and The Southern Gateway represents
Development
Site access and development provide approximately 180,000 the other major development site
sq.m of development floorspace intervention and is a key proposal
To facilitate the delivery of key focused upon approximately introduced as part of the update
sites within the EZ £148.3 million of 150,000 sq.m Grade A office to the Investment Plan. The site is
funding is required for site access floorspace. The scheme will also a strategic location to the south
and development. The focus for fundamentally restructure the of the City Centre and represents
this investment will be on Paradise highway network in the immediate a major opportunity to expand
Circus, which has a well progressed area creating better linkages for the City Centre Core through
business case, and the Southern pedestrians and transforming the comprehensive redevelopment to
Gateway, which has an upfront wider business environment. deliver a vibrant new destination. It
investment requirement to bring offers the opportunity to diversify
the site forward. The remaining From a financial perspective the Birmingham’s leisure, retail and
investment is targeted at a number Paradise Circus development will cultural offer, including niche
of other sites requiring smaller over the life of the EZ generate retail, improved markets, family
interventions in line with emerging £319 million of additional business entertainment, residential and
business cases. rates. space for creative industries.
Paradise Circus
Paradise Circus is a major proposed
intervention for the initial phase of
the Investment Plan utilising
£87.8 million. This site is a strategic PROJECT £m
location on the edge of the Connecting Economic Opportunities 10.00
Central Business District (CBD)
representing a major opportunity HS2 Growth Strategy - Curzon Station 30.00
in economic terms to expand the
HS2 Growth Strategy - Interchange Site 20.00
financial and business services
sector but also in place making LEP Investment Fund 20.00
terms create a transformed
environment between the City Paradise Circus Phase 1 and 2 Additional Resources 4.40
Core, Jewellery Quarter, and Paradise Circus Phase 3 22.10
Westside including the Library of
Birmingham, National Indoor Arena Southern Gateway Site Infrastructure and Remidiation 35.47
and ICC.
Simplified Planning and Marketing (additional resources for 10 year programme) 0.74
The amount of funding that will
Delivery Team (additional resources for 10 year programme) 1.69
be directed to Paradise Circus
from the EZ has been increased by Accountable Body Costs (additional resources for 10 year programme) 1.93
£26.5 million over the extended
Investment Plan period to provide General Inflation to Revenue @2.5% 1.21
resources to complete the scheme TOTAL 147.54
and realise its full potential.
Table 5 Projects forming part of the Additional EZ Investment Programme
investment programme / birmingham city centre enterprise zone investment planFunding will be directed at two key This element will provide the vital
18 elements of the project to enable Infrastructure transport capacity linking those EZ
delivery. The first contribution will Infrastructure sites in Westside with the existing
be towards the development of rail network.
the new Wholesale Markets site To enable the delivery of key sites
at the Hub, Witton (not in the EZ £42.9 million of EZ funding will be In conjunction with the Metro
but supporting the City Council’s utilised to improve public transport extension, £8.35 million of EZ
Economic Zones programme) to infrastructure and connections. investment will be used to turn
enable the Southern Gateway The focus for this investment Centenary Square into a key
site to be redeveloped. The will be on extending the Metro gateway for the expanded CBD,
second contribution will be on the to Broad Street supporting the building on improvements put
Southern Gateway EZ site to create expansion of the CBD. Other funds in place as part of the Library
developable and commercially will be utilised to provide safe and of Birmingham development
viable building plots. £45.5 million direct access to sites supporting and complementing the Metro
of EZ investment will be utilised in growth of SME’s and ensuring road extension. The additional highway
total to bring the site forward. network capacity in the future. works in the area will be funded by
other partners.
The development has the potential
Metro extension and Centenary These projects will improve
to generate £139.5 million of
Square improvements connectivity for commuters,
additional business rates over the
A key focus for investment will be visitors and others and will have
life of the EZ.
for the extension of the Metro line a major beneficial impact upon
to Broad Street, improvements this part of the City Centre. The
to Centenary Square and investment will directly support EZ
Other sites
complimentary highway works. site delivery by complementing
While Paradise Circus and the
The total funding in place for the investment at Paradise Circus and
Southern Gateway require
project is £42.4 million, with £25 accelerating the delivery of Arena
intervention that will unlock their
million coming from the EZ. Central. Over the life of the EZ,
growth potential generating
significant business rates uplift, a Arena Central will generate £112.5
A sum of £16.65 million will be
number of other sites identified million of additional business rates
utilised from the EZ, to bring the
through dialogue with developers and approximately 4,000 jobs, in
Metro line into the expanded CBD
and landowners require smaller but addition to those generated at
in Westside, building upon the
equally important interventions. To Paradise Circus.
existing £129 million committed to
facilitate the delivery of other sites, delivering the new Metro line from
£15 million will be utilised. Snow Hill to New Street Station. Connecting economic
opportunities
In order to create the environment
that is attractive to occupiers £17.9
million is required to create safe
and attractive routes to EZ sites in
the Snowhill, Digbeth, Jewellery
Quarter and Eastside areas. The
existing routes from the City Core
and main arrival points have been
cited as a direct impediment
to attracting new businesses to
these areas that have significant
potential to support growth in the
digital, creative industries, ICT and
business services sectors.
Specific projects will include:
EZ Connectivity Programme
•C
reating a business corridor in
the Snowhill area to support the
expansion of the CBD eastwards
providing the environment
commensurate with the Grade A
office floorspace for the business
Metro interchange with New Street Station service sector.
birmingham city centre enterprise zone investment plan / investment programme•A
ddressing the lack of direct and These investments will ensure proposals will support the delivery
easy connections from the CBD the road network has capacity to of over 600,000 sq.m of commercial 19
across Great Charles Street at accommodate growth and provide floorspace as well as 2,000 homes.
the Newhall Street crossing and efficient access for business. A number of key infrastructure
Ludgate Hill. This will provide projects have also been identified
seamless links supporting the in the masterplan to connect and
expansion of the CBD north and HS2 Growth Strategy integrate the station into the City
opening access from the City - Curzon Station and Centre. Capital funding of £30
Core to growth opportunities for HS2 Growth Strategy - Curzon million will be made available for
SME’s. theand
Station Interchange
the Interchange this project. EZ sites in this area will
contribute towards this growth and
•T
he One Station project To maximise the benefits of have the potential to generate £497
connecting Moor Street and HS2 in the LEP area, up to £50 million of additional business rates
New Street Stations through million of capital funding will over the life of the EZ.
a transformation of the area’s be made available from the EZ
connections, will enable a direct to bring forward infrastructure Detailed proposals for Birmingham
link between the City Core and and commercial development. Airport/HS2 Interchange are
the City Park to open up Eastside The focus for this investment will expected to be brought forward
and Digbeth for SME growth. be around the proposed HS2 later in 2014/15.
stations in the LEP area where
•T
ransforming the quality of there are significant development The funding for these projects
Fazeley Street and Park Street opportunities. This investment is expected to be available from
as key connections to Eastside will be part of the local resources 2019/20 onwards, subject to
will enable safe and accessible required to support the delivery securing the necessary business
routes to be created linking of HS2 in line with the SEP growth rates income. Governance
the university campuses with strategy. arrangements will be established
opportunities for creative by the LEP to manage funding
industries, ICT and digital media. Detailed proposals are already in for the Interchange, including the
place for the Birmingham Curzon responsibilities for the individual
City Centre Ring Road Station area, with a masterplan LA.
•T
he A4540 Ring Road provides due to be agreed in 2014. These
vital vehicular access to
development sites within the
EZ, linking the City Core with
the main radial routes serving
the City and the Strategic
Road Network. The Ring Road
currently experiences significant
volumes of congestion during
peak hours, with further pressure
forecast to be placed on this
infrastructure due to an increase
in development trips generated
by the EZ (40,000 new jobs)
and network changes/highway
reconfiguration relating to
specific development sites.
To ensure direct access is
maintained to the EZ sites via an
efficient road network an initial
package of essential junction
capacity enhancements at key
locations on the Ring Road
are required. These locations
comprise:
- Bordesley Circus.
- Ashted Circus.
- Curzon Circle.
- Haden Circus.
- Holloway Circus. Paradise Circus
investment programme / birmingham city centre enterprise zone investment plan• Help businesses with the cost of Based upon a recognised 20%
20 LEP Investment Fund connection. successful conversion rate of
LEP Investment Fund opportunities, it is proposed to set
• Increase competition and up a £1.0 million FDI grant based
Up to £20 million of capital funding innovation in the IT and telecoms fund linked directly to job creation
will be made available to support services. and offering up to £1,000 per job
the implementation of the SEP created.
• Stimulate investment from media
and its four delivery programmes.
and knowledge based industries.
This investment is part of the
local resources that are aligned • Support SMEs to be able to take
to support the delivery of the SEP advantage of the benefits of high
vision and growth strategy. speed services. Skills Development
Skills Development
The SEP contains a number of
projects for delivery between To enable businesses entering
2015/16 to 2020/21. These are the EZ sites to gain access to the
estimated to be able to create
Business right skills supporting business
19,200 jobs, 6,100 new dwellings, Development
Business Development growth £1.81 million will be
641,300 sq.m of commercial/ utilised to provide a flexible skills
industrial space and infrastructure In order to support the growth of development package. This skills
to support growth. existing businesses and to minimise package will support the LEP in
the impact of displacement £3.18 delivering their objectives through
As with the HS2 Growth Strategy million of funding will be directed linking opportunities in the EZ to a
investment, funding from the EZ toward SME’s in the Digbeth, LEP wide audience. This investment
is expected to be available from Jewellery Quarter and Birmingham covers the period 2015/16 to
2019/20 onwards. Therefore this Science Park Aston areas. This 2019/20.
will be able to support projects covers the period 2014/15 to
which require funding towards the 2017/18. There are three main components
end of the SEP period. The LEP will designed to maximise impact:
put appropriate arrangements in The package of support will include
place to for the Governance of this the following: Employer focused recruitment
fund. Extending the current employment
• New business start-up fund
access funding focused on
offering subsidised financial
brokerage, coordination and
assistance of £2,500 to £7,500 to
recruitment support to EZ Inward
cover one off initial start up costs.
Investors and expanding EZ
Digital Infrastructure • Financial assistance consisting of companies. This would provide
Digital Infrastructure bespoke support maximising the
40% contribution of £10,000 to
£20,000 for existing businesses local impact of employment growth
To facilitate growth in creative, from the EZ.
to implement growth and
digital media and ICT sectors in
modernisation plans.
the Digbeth, Jewellery Quarter Single pot for company training
and Eastside areas £0.4 million of • Access to pre-recruitment Delivery of 100% funding towards
funding will be invested. training, supporting recruitment skills training courses, language
open days and pre-screening of and technical skills. Available for
The successful bid for Super job ready candidates. all businesses within the EZ to bid
Connected Cities Urban Broadband
for. It will form part of the offer for
funding secured £8.25 million of • Regulatory business advice
inward locating companies and
resources for capital works with an surgeries and peer monitoring
expanding local businesses in
additional £1.89 million from the scheme.
target sectors.
European Regional Development
Fund (ERDF). However revenue
Foreign direct investment Enhanced apprenticeships
costs associated with the main
digital infrastructure programme incentive scheme Providing a more developed
are not supported by Urban The EZ presents an opportunity apprenticeship package to
Broadband funding, with only a to attract and develop investors wrap around the core National
certain amount of funding from and £1.0 million will be utilised to Apprenticeship City Hub. Schemes
ERDF for revenue (£0.4 million). The provide incentives, which will allow providing wage subsidy and
overall package will: successful delivery of potential mentoring/coaching support for EZ
investors Business Birmingham are companies to assist in development
working with. of apprenticeships.
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